A continuing chronicle of how democracy is being destroyed across the entire European Union.
This blog is henceforth exploring various means whereby democracy may now be restored within or to the EU's formerly independent nation states now that economic chaos looms following the euro currency's apparently deliberate self-destruction, as long predicted on this blog? (Changed 23/11/10)

Wednesday, October 26, 2011

Fixing the Euro with Sub-Prime Mark II

Today, the problems of the EU are set to be solved in a complex package, jointly agreed, between France and Germany! Fat chance!

Der Spiegel highlights some of the huge flaws in the presently planned EU rescue package, linked here. Yet those difficulties merely scratch the surface of the real problems. Effectively it argues the leverage is nothing more than a new sub-prime crisis in waiting!

The EFSF has quite astoundingly been made the centrepiece of saving Italy and possibly later Spain. That too, when it has not, alongside the IMF, the ECB, the EFSM AND loans from the EU budget itself, even been able to stave off or treat the problems of Greece, Portugal or the coming housing crunch for Ireland!

The EFSF cannot fill any useful role as it is a self-assurance scheme! Can Italy and Spain now lend themselves sufficient funds to finance a return to growth in economies where all the wealth must go against interest payments on earlier loans that also did not stimulate growth!

Even were the new EFSF able to do so, who will thereafter then be left to lend to France?

Everything that the men and women meeting in Brussels today, the 27 neutered leaders of the EU's former member states, hav done, while acting in concert regarding the euro crisis, since their disastrous meetings in May 2010, has failed.